Rising domestic borrowing tightens credit space for businesses, World Bank
NAIROBI, Kenya, Nov 24 — Kenya’s sustained surge in domestic borrowing is increasingly squeezing the private sector’s access to credit, a new World Bank Kenya breaking news | Kenya news today |..
✨ Key Highlights
The World Bank has warned that Kenya's increasing domestic borrowing is significantly limiting credit access for the private sector, potentially hindering investment and job creation.
- The government's net domestic borrowing rose to 5.0 percent of GDP in FY2024/25, exceeding budget targets and an increase from the previous year.
- Commercial banks now hold 42.6 percent of Kenya's domestic debt.
- Kenya remains at high risk of debt distress, with total public debt climbing to 68.8 percent of GDP.
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World Bank Warns on Kenyan Credit as Bank Reports Profit and Sh103mn Fraud Case Continues - November 2025
The World Bank has warned that Kenya's increasing domestic borrowing is significantly limiting credit access for the private sector, which could hinder investment and job creation. Amid this warning, Consolidated Bank Group reported a notable turnaround, achieving a Sh94.7 million pre-tax profit in the nine months to September 30, 2025. This represents a 177 percent rebound from a loss in the previous year. In a separate financial matter, a third suspect, Stephen Juma Ndeda, has been charged in Kenya over a money-laundering scheme exceeding Sh103 million. The case involves an American investor allegedly defrauded while seeking a loan. In response to the economic climate, the 5th Abojani Economic Empowerment Conference urged Kenyans to adopt an "ownership economy" by investing in productive assets for long-term wealth.
